The sky rocketing fuel prices has sent the global economy on turmoil. This is probably because any form of growth and development in the current scheme of things is unthinkable and impossible without oil. In addition rise in oil prices is not restricted. The rise is translated in the form of a price hike in the other commodities also. The economic slowdown and major crashing of the market in the current times is witnessed and combined by the unthought of hike in the fuel prices. Inspite of everything, the governments all over the world have been forced to hike up the fuel prices in order to meet the increasing prices thus failing at saving their citizens from bearing the brunts of inflation, stagflation, and recession.
A couple of decades back the adverse economic factors were not a matter of worry for the developed countries. The rise in oil prices also didn't bother their economy and finances. The US was and is the largest consumer of oil. The hike in the oil prices ideally should have hit the country badly. But as the growth and development in the other sectors were unaffected the country didn't pay much for the ever increasing rise in the fuel prices.
Unfortunately for the US, now the times have changed, along with the other countries the US is also dearly paying because of the damp economic phase and over excited oil prices. The dollar is dropping and the country after quite a many years have been faced with economic factors that were unknown to it. Stagflation, recession and inflation are hovering over the country along with the sky high oil prices. As the productivity of the other sectors have been considerably affected owing to the low market trends, the US have been badly hit by the astronomic oil prices after quite some time. The US has also been hit as its exporters are charging more than what they used to. US exporters like China have revised the rates of export and hence among all the other things, the US also faced difficulties in importing at a desirable rate. Importing premium goods and services at a competitive rate was the motive that drove the US to borrow IT services from countries like India. This was a step that offered mutual benefits to both the sides. The US could get first rate services in the areas like and by hiring a software company based in India. India for the last few years has been making amazing developments in the field of Information Technology. The flocking of foreign multinational companies was an icing on the cake for young India to make the optimum use of the IT related knowledge. Now things have gone even better as many US software companies outsource software developers along with . While the US has been able to hire the IT services at a comparatively cheap rate it is still to overcome the much bigger challenges in the other aspects of its economy. ???
